Howmet AerospaceMEX:HWM 69 Altman Z-Score is 10.55 as of Jun. 26, 2026, which is 398% above its 10-year median of 2.12. GuruFocus rates MEX:HWM with a GF Score™ of 69/100 and a GF Value™ of MXN2,486.58 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 337 Aerospace & Defense companies, Howmet Aerospace ranks better than 86.65% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 10.72 is strong.
Howmet Aerospace has a Altman Z-Score of 10.55, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Howmet Aerospace's Altman Z-Score or its related term are showing as below:
MEX:HWM'
s Altman Z-Score Range Over the Past 10 Years
Min: 0.74 Med: 2.12 Max: 10.72
Current: 10.72
During the past 12 years, Howmet Aerospace's highest Altman Z-Score was 10.72. The lowest was 0.74. And the median was 2.12.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Howmet Aerospace Altman Z-Score Related Terms
Howmet Aerospace Altman Z-Score Historical Data
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The historical data trend for Howmet Aerospace's Altman Z-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:HWM vs GD, LMT, RKLB: Altman Z-Score Comparison
For the Aerospace & Defense subindustry, Howmet Aerospace's Altman Z-Score, along with its competitors' market caps and Altman Z-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Howmet Aerospace Altman Z-Score vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Howmet Aerospace's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Howmet Aerospace's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Howmet Aerospace's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
0.2558
+
1.4
*
0.3539
+
3.3
*
0.1751
+
0.6
*
14.1604
+
1.0
*
0.6694
=
10.55
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Howmet Aerospace (MEX:HWM) has a Altman Z-Score of 10.55 as of Jun. 26, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Howmet Aerospace and its competitors. This is 398% above median its historical median of 2.12. Over the past decade, Howmet Aerospace's Altman Z-Score has ranged from 0.74 to 10.72. According to the industry distribution chart, Howmet Aerospace ranks #45 out of 337 companies in the Aerospace & Defense industry, placing it in the top 13.4%.
Is Howmet Aerospace's Altman Z-Score too high?
Howmet Aerospace's current Altman Z-Score of 10.55 is 398% above median its 10-year median of 2.12. Over the past 10 years, this metric has ranged from a low of 0.74 to a high of 10.72. The Aerospace & Defense industry median Altman Z-Score is 3.55. Howmet Aerospace's value of 10.55 is 197.2% above this industry median. Based on the distribution chart, Howmet Aerospace ranks #45 out of 337 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Howmet Aerospace has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Howmet Aerospace's Altman Z-Score compare to GD and LMT?
According to the Aerospace & Defense industry distribution chart, Howmet Aerospace ranks #45 out of 337 companies for Altman Z-Score. This places Howmet Aerospace in the top 13% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 3.55. Howmet Aerospace's value of 10.55 is 197.2% above this benchmark. Historically, Howmet Aerospace's own Altman Z-Score has ranged from 0.74 to 10.72 over the past decade. While the company's 10-year median is 2.12 vs. the industry median of 3.55, Howmet Aerospace has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Altman Z-Score for an Aerospace & Defense company?
The median Altman Z-Score among Aerospace & Defense companies is 3.55, based on 337 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Howmet Aerospace's current Altman Z-Score of 10.55 is 197.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Howmet Aerospace and its competitors. For the Aerospace & Defense industry, the median Altman Z-Score is 3.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Howmet Aerospace's current Altman Z-Score is 10.55, which is 398% above median its own 10-year median of 2.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Howmet Aerospace stock overvalued right now?
Based on GuruFocus' analysis, Howmet Aerospace (MEX:HWM) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN2,486.58, compared to a current price of MXN4,875.00 — trading 96.1% above its estimated fair value. The current Altman Z-Score is 10.55, which is 398% above median its 10-year median of 2.12 and 197.2% above the Aerospace & Defense industry median of 3.55. Howmet Aerospace's overall GF Score™ is 69/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Howmet Aerospace (MEX:HWM), the current Altman Z-Score is 10.55 as of Jun. 26, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Howmet Aerospace (MEX:HWM) Overvalued in 2026?
Based on GuruFocus' analysis, Howmet Aerospace stock appears to be overvalued.
The current stock price of MXN4,875.00 is trading 96.1% above its estimated GF Value™ of MXN2,486.58.
GuruFocus considers Howmet Aerospace to be Significantly Overvalued.
Key valuation signals for MEX:HWM:
Altman Z-Score: 10.55 (398% above median its 10-year median of 2.12)
GF Value™: MXN2,486.58 vs. price of MXN4,875.00 (96.1% above fair value)
Industry Position: 197.2% above the Aerospace & Defense median (#45 of 337)
No single metric tells the full story. See the MEX:HWM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Howmet Aerospace Inc offers engineered solutions for the aerospace and transportation industries. The company's products and solutions include investment castings for jet engines and industrial gas turbines; seamless rolled rings for jet engines; fastening systems for aerospace, industrial and commercial transportation applications; forged jet engine components (e.g., jet engine disks); machined and forged aircraft parts; and forged aluminum commercial vehicle wheels, all of which are sold directly to customers or through distributors. It has four reportable segments: Engine Products, which derives key revenue, Fastening Systems, Engineered Structures, and Forged Wheels. Geographically, the company derives maximum revenue from the USA, followed by France, Japan, Germany, and other markets.
69GF Score
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